Minimum wage center to help business cope with higher costs

BANGKOK, 3 October 2011 -The Ministry of Labor has opened the Center for the 300 THB minimum wage with an aim to collect information on the impact of wage rise on businesses in order to help them cope with higher costs.

According to Labor Minister Mr. Padermchai Sasomsap, the primary purpose of the Center is to help reduce the impact of the new wage adjustment on business operators and to implement any measures to help businesses stay afloat.

Mr. Padermchai said most of the wage committee, or 63%, in 77 provinces agreed with the 300 baht minimum wage in the recent survey. They also wanted to see the new wage being applied across Thailand within one year. Among the 77 provinces, 23 preferred the wage rise of under 40%.

Meanwhile, the committee in Samutsongkram advised that the 40% rate increase should be adjusted within one year or three years, whereas the 300 baht maximum wage should follow suit within 3 years.

Business owners have proposed that the government help them deal with the higher costs by lowering their portion of social security contribution, corporate and personal income taxes. They also would like the government to cover the increased amount of wage and offer them low interest rate loans.